If the price elasticity of demand for a good is greater than one, then the demand for that good is:
A. unit elastic.
B. perfectly elastic.
C. elastic.
D. inelastic.
Answer: C
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If the structural unemployment rate is 3 percent, the frictional unemployment rate is 3 percent, and the current unemployment rate is 5 percent, then the economy is in a recessionary gap
Indicate whether the statement is true or false
The International Water Management Institute estimates that clean water could be provided to everyone on earth for an outlay of $______ a year beyond current spending on water projects.
Fill in the blank(s) with the appropriate word(s).
If Uber is required to start paying the value-added tax (VAT) in Great Britain, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to
A) decrease producer surplus and decrease deadweight loss. B) decrease consumer surplus and increase deadweight loss. C) increase consumer surplus and increase producer surplus. D) maximize consumer surplus and minimize producer surplus.
Refer to the table below. The profit-maximizing price for the monopolist will be:
Answer the question below on the basis of the following demand and cost data for a pure monopolist.
A. $2.50
B. $2.25
C. $2.00
D. $1.75